Topic: Financial Advice

Teresa’s mortgage adviser arranged her a fantastic refinancing deal, with very low mortgage rates. However, a few months later, Teresa was received an $88,000 GST invoice. The IRD told Teresa the refinance had triggered a significant GST liability. Was the mortgage adviser responsible for Teresa’s unexpected GST bill?

Helen approached an insurance adviser to obtain life insurance. Helen signed the adviser’s terms of engagement noting fees. Helen moved insurers after 10 months and was charged $1,495.00. Was the adviser entitled to charge the fee?

Barbie obtained business insurance through an insurance broker. Barbie and her broker had a personal fight that ended their business relationship. Barbie complained that the broker had been unprofessional and asked for a refund of the commission that the broker earned from Barbie’s business.

When completing his health insurance application, Brian failed to disclose that he had back and shoulder injuries, and he had monthly visits to a chiropractor. After having an insurance claim declined for non-disclosure, Brian complained his adviser hadn’t told him about the need for disclosure. Is the adviser liable for Brian’s lost insurance cover?

Jane needed a loan to build a boarding house on her property. Jane used a financial adviser to help her find finance. When the loan needed rolling over Jane incurred further fees, both from the lender and the adviser. Jane was not happy with the level of the fees and said the adviser had not made her aware of all the extra fees that would apply. Was the adviser required to refund some of the fees to Jane?

Christine asked an insurance adviser to place cover to protect her family in the event she got sick. When Christine’s subsequent sickness was not covered by insurance, Christine complained to FSCL.

Sanjay wanted lower cost insurance and asked his insurance adviser to get quotes from other insurers. Sanjay’s insurance adviser provided the quotes and Sanjay chose a new insurer. Sanjay completed the application forms and the new insurer approved cover. Shortly after moving insurer, Sanjay made a claim. After reviewing Sanjay’s medical records, the new insurer cancelled Sanjay’s policy for non-disclosure of pre-existing medical conditions. Sanjay was upset that his adviser had not fully advised him about go the new policies and his duty of disclosure. Was the insurance adviser at fault?

Eva and Andre change insurers upon the advice of their insurance adviser, but discover they have less cover than they used to, because Andre did not disclose his heart condition. Can FSCL help resolve a complaint about the risk of financial loss in the future?

Walter used an insurance adviser to obtain insurance. Upon claiming for income protection insurance after a head knock at a game of indoor cricket, Walter finds out his claim is declined because he had made material mistakes in not disclosing past medical issues such as depression and drug and alcohol use.

Daniel wanted to reduce his insurance premiums. Daniel’s adviser found a new policy that would provide similar benefits at a lower premium. 60 days into his new policy, Daniel was diagnosed with cardiomyopathy. Daniel’s claim under his new trauma policy was declined because it occurred within a 90 day stand down period in his policy. Daniel felt his adviser should have ensured that he had trauma cover before cancelling his old policy. Would Daniel’s claim ever be paid?